Tariff Resources

A tariff is a tax imposed by a country on products coming in from other countries. This tax makes imported goods more expensive than local ones. Tariffs are usually collected by the country’s customs authority or agency when the goods cross at the border.

Canada’s retaliatory tariffs on U.S. goods work the same way as American tariffs, just the other way around. When American products are brought into Canada, Canadian importers, individuals, small businesses, or large companies will pay the extra tax at the border.

By law, importers must pay tariffs when they import goods from other countries. However, in most cases, they pass those costs on to customers by raising prices, like at grocery stores, gas stations, etc.

If importers choose not to raise prices and pay the extra cost themselves, they make less profit. That can lead to less business spending, which can slow down the economy.

Government of Canada: Tariffs, rules and regulations 

Tariffs can hurt the Canadian economy because they make selling Canadian goods in other countries more expensive. When other countries place tariffs on Canadian products, it can lead to fewer sales for Canadian businesses. That means less money coming in, leading to job losses, reduced business growth, and slower economic activity overall.

Even when Canada imposes tariffs on imported goods in response, it can raise prices for Canadian consumers and businesses that rely on those products. This can lead to higher costs, lower profits, and a weaker economy.